Peasants' retirement age to be increased?

A report taken from ST

Finland's senior citizens happy to delay retirement

Pension reform and flexible work schedules help older employees extend their careers

HELSINKI (FINLAND) - FINLAND, the European country with the most rapidly ageing population, has succeeded in convincing its workers to delay retirement, setting an example for the rest of Europe as well as farther afield.

Often dubbed the 'Japan of Europe' because its population is ageing so fast, Finland introduced a pension reform in 2005 that initially appeared to be a bitter pill to swallow, but that has in fact gone down easily.

Workers are encouraged to work longer in order to earn more, thereby easing pressure on the state pension system to support the growing number of retired people.

Last year, 16 per cent of Finns were aged 65 or older. The figure is expected to soar to 26 per cent by 2030.

Since the pension reform was introduced, the average retirement age in Finland has increased from 60.1 years in 2004 to 60.7 years last year.

The employment rate for workers aged 55 to 64 is also now more than 50 per cent, 10 points higher than the European average.

'We are on the right track,' said Mr Ismo Suksi, project manager at Finland's Social Affairs Ministry.

According to a poll published last month, 65 per cent of people aged 50 years and older were in favour of the pension reform.

Up until 2005, Finland set the legal retirement age at 65, and taking early retirement was popular.

The financial ramifications were minimal, with a significant part of a worker's pension based on the salary earned during the last 10 years of employment.

Now, after the pension reform, employees can take full retirement any time between the ages of 63 and 68, and early retirement is penalised with lower pensions.

Work-related pensions are based on contributions from both the employer and the employee, with the former contributing about 20 per cent and the latter about 80 per cent.

The Central Organisation of Finnish Trade Unions (SAK) agrees that the reform has been generally well-accepted, though some compromises were necessary to get the Bill passed, including more flexible work schedules and work conditions for the oldest seniors.

At lock company Abloy, workers older than 55 are entitled to exercise on work time in the company gym. They can also choose to work part-time and enjoy extra paid vacation, starting with six days a year at age 58 and 20 days a year after the age of 63.

Oras, a company that manufactures plumbing fixtures, is a forerunner when it comes to elderly workers.

'Experiences have been good,' said Oras human resources head Merja Helkelae, adding that the company had raised the average retirement age from approximately 59 to 63 since 2001.
The world's largest mobile phone maker, Nokia, has no special programme for seniors, but the company offers them special working conditions if they do choose to stay on.

'Part-time pension is an option, and employees can also, when possible, work in two shifts instead of three if they have health reasons,' said Ms Paeivyt Tallqvist, a spokesman for Nokia.
Unions are quick to point out that not all companies have adopted special programmes, and senior citizens are the first to suffer when there are cutbacks in the social welfare system.
In addition, most seniors who choose to extend their careers are those who are already financially stable and have stimulating, fulfilling jobs.

'Those people who want to continue working after the age of 63 do not think much about money. Most of them have a nice working environment and an interesting job. They like working,' said SAK adviser Kaija Kallinen.

Ms Marianne Roennberg, a 56-year-old former businesswoman who now works for a pensioners' association, said she wanted to stay in the workforce 'as long as they will have me'.
'You feel better when you are working as long as there is no stress. It is idleness that makes you sick,' she said.

Finland aims to prolong careers by an average of two or three years by 2050 to raise the average retirement age to 62 years.

Experts noted that the rise in the number of working seniors coincides with Finland's strong economic recovery after a stormy period in the early 1990s.

AGENCE FRANCE-PRESSE

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Looks like the decision for peasants to retire at age 65 has already been made. The sacred cow finally is going to be slaughter, the strongest indication that things do not bode well.